Once I had this conversation with my friend and he wanted to do his own art business in Bali, Indonesia. He asked me about what kind of product he should create to sell there because there were already so many competitors in the art business for quite sometimes.
What do you think about this situation? Here is how we illustrate the situation. . .
Imagine yourself fishing in a big pond filled with a lot of fishes that are overfed with a lot of same baits which means that the fishes will also have a lot of choices too.
This is where we have to change our point of view about marketing strategy because these days if we want to succeed or winning the marketing war whether it's an online or an offline business we should learn how to navigate ourselves into doing our business “smarter" and not “harder".
Then I told him, Why don't you target your market into a more specific segment, for example almost 20% of all the tourists to Bali came from Japan, from this fact you can try to target this specific group of tourists on selling your art products. . . BUT instead of selling an ordinary art work, why don't you create an art work that combine a little of Japanese culture with Balinese culture?
For example, You can create an art work whether it is a painting or a craft work about Balinese Dancers with a blooming Sakura trees as the background, I've never seen any other art businessman doing this strategy before, if some Japanese tourists saw this art, chances are they might find it interesting thereby the possibilities of sale on the product would be much greater.
Here's a quick fact, a “personalized/specific product" can sale as much as 2 or 3 times more prices than a general product.
Now you can do fishing in a small pond of hungry fishes with a perfect bait that designed specifically for them! if you find an untapped (untouched) market and know what they want/need, you can sell a product that will surely be “a hot selling" product, how? Because you'll own the whole market block!
Niche VS Mass Marketing
Now if you are a big company with a huge marketing budget and you would want to make an extra millions dollar a month then MASS marketing is the best solution for you, BUT if you're only a small business owners/entrepreneurs and want to make an extra $ 1,000 to $ 15,000 a month then niche marketing is the technique just for you.
About The Niche Market. . .
The word “niche" comes from a French word that means “to nest" so Niche Marketing is the way of targeting your product or service into a smaller portion of a market that is not being readily served or bombarded with the mainstream products or services froms other marketers and some of these markets even have never been tapped before, the niche market can be geographic areas, ethnic, level of age, even certain hobbies or particular interest.
You can't be all things to all people, so why don't you focus on that small business area, many businesses have gone broke trying to be all things to all people, so instead of trying to be all things to all people, you need to find a Niche, there are numerous groups that need help or solutions to their problems, can you provide them the solutions?
For example, instead of writing a book on “How to raise money?", which there are too many titles similar and it is to “big", why don't you write one for a more specific market such as “How a retired people can raise money?", more focus equals to more profits and less work, when aiming or targeting an online market then the smaller one is the most profitable way to go.
Now you might ask me, “If I want to go for a niche, which one do I have to try to find out first, the niche product or the niche market?"
Actually there is no standard procedure about which one to find out first because sometimes people find themselves in a niche market without even realizing they are in it already, for example you find there are a lots of people facing the same problems and they are trying to find the solution about their problems and you happened to have the solution or know some sources that can deliver the solution but no one else seems to know about what you know, so you can take advantage from this situation/opportunity by giving them the solution to their problems, so basically this is a strategy finding the market first then the product.
Here is also another example, perhaps there is a product or service you need, but it's difficult to find it in your area, so you begin to providing the product or service for yourself, and if you think that you can sell your product or service to other people who are facing the same problem like you, then this will be your niche product. This is the strategy of finding the niche product first then the market. BUT this is a BIG MISTAKE!
Deciding on the product first before finding a market is a BIG mistake, probably the most common mistake ever, if you're asking “What is a good product/service to sell online?" You're making the mistake right now!
Find out what they want first and give them the solution because that million dollar best-selling product idea you have on your mind may not be what your customers want.
Can you imagine spending a lot of time, money to create some product and after you try to market the product it turns out that there are no profitable markets to sell it?
This is why I think it will be more “wiser" to find the market first, after that the product.
The Internet makes it very easy for us to find people who are interested in a specific category like art, gardening, pets, hospitality, accountants, or other interest group and you can locate this targeted audience through forums, ezines, newsgroups, mailing list, etc. One or several of that categories will be your niche market.
Sammy IJ is a young internet marketer who likes to think outside the box and change people's life by teaching how to build a profitable online business from scratch, you can learn more about internet marketing strategies using his tons of free online articles .